Quiksilver, Inc.(NYSE:ZQK), today announced operating results for the first quarter ended January 31, 2004.
Consolidated revenues for the first quarter of fiscal 2004 increased 33% to $256.1 million
as compared to fiscal 2003 first quarter consolidated revenues of $192.1 million. Consolidated
net income for the first quarter of fiscal 2004 increased 40% to $9.2 million as compared to $6.6
million the year before. First quarter fully diluted earnings per share was $0.16 versus $0.12 for
the first quarter of fiscal 2003.
Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of
Quiksilver, Inc., commented, #'Our strong performance during the quarter, which once again
exceeded expectations, is a great way to start the new fiscal year. These results were primarily
driven by strong sales across all divisions, and better than expected operating margins,
particularly in the Americas.''
Revenues in the Americas increased 21% during the first quarter of fiscal 2004 to $123.2
million as compared to fiscal 2003 first quarter revenues of $102.0 million. As measured in U.S.
dollars and reported in the financial statements, European revenues increased 37% during the
first quarter of fiscal 2004 to $106.2 million as compared to fiscal 2003 first quarter European
revenues of $77.2 million. As measured in euros, European net sales increased 16% for those
same periods. Asia/Pacific revenues were $26.3 million in the first quarter of fiscal 2004
compared to $12.1 million in the first quarter of fiscal 2003, which included only two months of
Asia/Pacific operations since being acquired.
Mr. McKnight continued, #'We recently returned from the MAGIC apparel trade show in
Las Vegas, and the feedback from retailers regarding our fall lines was extremely positive across
the board. Our retail stores continue to perform well both here and abroad. We recently
promoted Carol Christopherson to Americas President of Retail, and we believe she will have a
meaningful and immediate impact on our business.''
Consolidated inventories increased 24% to $179.3 million at January 31, 2004 from
$144.2 million at January 31, 2003. Consolidated trade accounts receivable increased 16% to
$200.6 million at January 31, 2004 from $173.5 million at January 31, 2003. Trade account
receivable growth was modest compared to the increase in sales as average days sales
outstanding decreased about nine days. Inventories grew 16% in constant dollars.
Bernard Mariette, President of Quiksilver, Inc. commented, #'In addition to strong
financial performance during the quarter, we continued to make progress on the development of
our global operating platform. This was particularly true for our Asia/Pacific division. Our
operations in Indonesia are performing very well, and we are excited to have hired David Toda as President of Quiksilver Japan. We continue to believe that Japan represents our best source of
growth for this division in the near and intermediate term.''
Also, today the Company increased its guidance to new ranges of $1.10 billion to $1.12
billion for revenues and $1.22 to $1.25 for earnings per share.
Mr. McKnight concluded, #'Our multi-brand, multi-channel, global approach to our
business continues to afford us significant growth prospects into the future. Our momentum
remains strong, our financials are sound, and we remain committed to fully capitalizing on our
leadership position in the market.''